Mickley Corporation produces two products, Alpha6s and Zeta7s, which pass through two operations, Sintering and Finishing. Each ofthe products uses two raw materials-X442 and Y661. The company uses a standard cost system, with the following standards foreach product (on a per unit basis):Raw MaterialStandard Labor TimeProductX442Y661SinteringFinishingAlpha63.0 kilos2.0 liters0.40 hours1.00 hoursZeta75.0 kilos5.0 liters0.50 hours1.20 hoursInformation relating to materials purchased and materials used in production during May follows:PurchaseStandardUsed inMaterialPurchasesCostPriceProduction15,700 kilos16,700 liters$51,810$20,040$3.10 per kilo$1.30 per liter10,200 kilos14,700 litersX442Y661The following additional information is available:a. The company recognizes price variances when materials are purchased.b. The standard labor rate is $23.00 per hour in Sintering and $21.50 per hour in Finishing.c. During May, 1,450 direct labor-hours were worked in Sintering at a total labor cost of $35,090, and 3,020 direct labor-hours wereworked in Finishing at a total labor cost of $70,970.d. Production during May was 2,300 Alpha6s and 700 Zeta7s.Required:1. Complete the standard cost card for each product, showing the standard cost of direct materials and direct labor.2. Compute the materials price and quantity variances for each material.3. Compute the labor rate and efficiency variances for each operation.

Name: Mickley Corporation produces two products, Alpha6s and Zeta7s, which
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Description: Mickley Corporation produces two products, Alpha6s and Zeta7s, which pass through two operations, Sintering and Finishing. Each ofthe products uses two raw materials-X442 and Y661. The company uses a standard cost system, with the following standard

Step 1 Variances is the difference between Budgeted cost and actual cost of factors of Production.

Business

Accounting

Required: 1. Complete the standard cost card for each product, showing the standard cost of direct materials and o 2. Compute the materials price and quantity variances for each material. 3. Compute the labor rate and efficiency variances for each operation.

Required: 1. Complete the standard cost card for each product, showing the standard cost of direct materials and o 2. Compute the materials price and quantity variances for each material. 3. Compute the labor rate and efficiency variances for each operation.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 2MC: TyeDye Lights makes two products: Party and Holiday. It takes 80,900 direct labor hours to...

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